9911796707
TMI Blog2018 (2) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... iture incurred towards payment of PF by the assessee - Held that:- It has been consistently held that such type of statutory payments on account of employer’s contribution are allowed as deduction if they are paid before the due date of filing the return of income as provided in section 43B. There is no dispute about the actual date of payment of the impugned amount is before the due date of filing the return of income. Therefore, delete the impugned disallowance of 1,03,694/- wrongly disallowed u/s 36(1)(va) r.w.s. 2(24)(10) - Assessee appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... rve from perusal of the balance sheet of the assessee that interest free funds in the form of capital as on 31/03/2006 was ₹ 67,76,487/- and as on 31/03/2007 at ₹ 93,96,347/-. As against this interest free capital, the investment in equiry shares and other interest free advances are ₹ 31,89,441/- as on 31/03/2006. These figures of interest free capital and investments, clearly show that the interest free capital is much more than the investments made. Similar issue came up before Hon'ble Mumbai High Court in the case of CIT vs. Reliance Utilities & Power Limited [2009] 178 Taxman 135 wherein Hon'ble court held that if there are funds available, both interest free and over draft and / or loans taken, then a presump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und favour from CIT(A) also. From perusal of the records including the paper book filed by the assessee, we find that this fact is not disputed that the alleged amount is the business loss and further during the assessment year 2011-12 the assessee was able to recover the remaining amount from its employee which stands verifiable from the audited profit & loss account for assessment year 2010-11 where the recovery of loss previously written off at ₹ 6,25,840/- is credited and offered to tax. We, therefore, in the given facts and circumstances of the case, are of the view that the assessee has rightly claimed the business loss of ₹ 6,25,840/- and both the lower authorities erred in disallowing the same. We, therefore, delete the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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